Contract Certification Flashcards
(17 cards)
What are the standard forms of contract used for construction within the UK?
- Joint Courts Tribunal (JCT).
- New Engineering Contract (NEC).
- International Federation of Consulting Engineers (FIDIC).
When might you use NEC contracts?
- NEC contracts are commonly used within the public sector for projects by national and local government bodies.
What are the differences between the JCT and the NEC contracts?
- NEC contracts promote collaboration and obliges parties to with mutual trust and cooperation.
- NEC contracts are written in plain-English without complex legal terminology.
- NEC contracts require the contractor to periodically update the works programmes and there are deductions and sanctions for failing to submit updated programmes.
- NEC contracts do not require separate contact forms for employer design or contractor design as the contractor is obliged to design all items listed in the works information.
What is the difference between JCT minor works contracts and JCT intermediate works contracts?
- Intermediate contract has more extensive control procedures than minor works contracts (such as a full list of ‘relevant events’).
- Intermediate contract allows for works to be separated into sections.
- Intermediate contracts allows for partial possession.
- Intermediate contract allows for naming of sub-contractors.
- Intermediate contract contains provisions relating to collateral warranties, parent company guarantees and performance bonds.
Why did you use the JCT minor works contract 2016 with contractors design?
- The works were not deemed to be complex in nature.
- The client was to maintain control over design quality and cost.
- The contractor were to contain an element of design by the Contractor relating to achieving performance standards detailed within the mechanical, electrical and public health performance specification.
- Sectional completion and named sub-contractors were not required.
Outline key changes between the 2016 and 2024 JCT contracts?
The JCT 2024 suite of contracts, introduces several key changes compared to the 2016 edition, primarily focusing on enhanced collaboration, incorporating the Building Safety Act 2022, and emphasizing ESG considerations
Contract Execution
What are the different ways in which a contract can be executed?
- Under hand.
- As a deed.
What are the differences between a contract signed under hand or as a deed?
- Contract signed under hand has a statutory limitation period of 6 years; contract signed as a deed has a statutory limitation period of 12 years.
- Contract signed under hand requires ‘consideration’ from each party; contract signed as a deed does not require consideration from each party.
- Contract signed under hand can be oral contracts; contract signed as a deed must be in writing.
- Contract signed as a deed requires specific wording to confirm it is a deed.
- Contract signed as a deed requires witnessing or more than one signatory.
What is the legislation which governs the limitation periods for contracts?
- Limitation Act 1980.
This act sets out the time limits within which legal claims can be brought, including those for breach of contract. The limitation period for most contractual claims is 6 years, but for deeds, it’s 12 years.
What is the difference between nominated sub-contractors and named sub-contractors?
- The nominated sub-contractor is appointed by the principal contractor but is selected by the employer.
- The named sub-contractor is appointed by the principal contractor but is selected by the main contractor from a shortlist of sub-contractors provided by the employer.
Are nominated sub-contractors still used within the construction industry?
- Nominated sub-contractors are not commonly used within the construction industry.
- JCT contracts do not include provisions for nominated sub-contractors after the JCT 1998 suite of contracts.
Why are nominated sub-contractors rarely used in the construction industry?
internet: This is because the Contractor has less control over the subcontractor’s selection and therefore, performance. A crucial feature of nomination is the extent to which a Contractor may be held liable for defective work carried out by a subcontractor.
DWL answer:
- The main contractor is unlikely to be held responsible for delays or non-performance by a nominated sub-contractor. Therefore, the risks remains with the Client and the Contractor may be able to claim an extension of time and loss and expense in the event of a delay by the nominated sub-contractor.
- Named sub-contractors allow the employer to name acceptable sub-contractors but ensure the main contractor takes responsibility for their performance.
What are prime cost sums?
- An allowance contained within the tender documentation to account for works or services being undertaken by a nominated sub-contractor.
- Prime cost sums are exclusive of the main contractor’s overheads and profit.
What is the difference between a prime cost sum and a provisional sum?
- A prime cost sum is an allowance to account for works or services being undertaken by a nominated sub-contractor.
- A provisional sum is an allowance for works or services that is not defined in enough detail to provide a definite cost.
Provisional Sums
What is a provisional sum?
- An allowance contained within the tender documentation to account for certain works, which are not yet sufficiently detailed to allow the contractor to accurately price.
What is the difference between defined and undefined provisional sums?
- Defined provisional sums contain sufficient detail to allow the contractor to account for the works within the project programme and preliminaries costs.
- Undefined provisional sums do not contain sufficient detail to allow the contractor to account for the works within the project programme and preliminaries costs.
What is the difference between a provisional sum and a prime cost sum?
- A provisional sum is an allowance contained within the tender documentation to account for certain works which are not yet sufficiently detailed to allow the contractor to accurately price. A firm cost is provided once sufficient detail is provided to allow the contractor to accurately cost the works.
- A prime cost sum is an allowance contained within the tender documentation to account for works or services being undertaken by a nominated sub-contractor. A firm cost is provided once the main contractor has added any overheads and profit to the prime cost sum.
